A Wall Street analyst has revised Tesla’s (NASDAQ: TSLA) stock price target upward by over 50% as TSLA shares rally in line with optimism surrounding Donald Trump’s election.
Jefferies analyst Philippe Houchois raised the stock target from $195 to $300 while maintaining a ‘Hold’ rating in an investor note to clients on November 14.
According to Houchois, the update highlights the optimism around Tesla’s growth across its various ventures, spurred by post-election expectations of deregulation under the Trump administration.
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The outlook suggested that Tesla should consider leveraging the recent $1 trillion valuation to raise equity capital.
Houchois contends deregulation could open new opportunities in fields like autonomous vehicles, robotics, and other tech ventures, which he believes are increasingly seen as a ‘proxy’ for CEO Elon Musk’s broader interests.
Jefferies analyst issues one warning for Tesla
On the other hand, he also cautioned that these areas often require substantial investment with unclear long-term returns, meaning Tesla may need additional capital to stay ahead of rivals.
The note further noted that TSLA’s recent share price movements reflect broader investor expectations around Musk’s varied interests rather than solely Tesla’s auto sales.
“We lift estimates on a mix of software, ZEV and Storage more than auto. PT raised to $300 on higher earnings and growth, and lower discount rate. In recent days, Tesla shares have looked like a proxy for Elon Musk’s wider interests on expectations of de-regulation driving growth across separate businesses,” Houchois said.
Notably, Musk has increasingly grown close to Trump through his campaign and earned a role in the White House to steer the Department of Government Efficiency (D.O.G.E).
Wall Street turns bullish on TSLA share price
It is worth noting that Tesla has increasingly become the center of attention on Wall Street after the stock spiked in value following Trump’s election and Musk’s role in his campaign.
This element has inspired a wave of bullish projections, with Morgan Stanley’s (NYSE: MS) Adam Jonas projecting that the equity could rise to $500 in a bull case. Jonas stated that due to Musk’s support for Trump, investor sentiment around the EV maker has shifted positively.
Wedbush analyst Dan Ives sees TSLA rallying to $400, up from his previous target of $300. Ives believes the Trump administration will be a ‘game-changer’ for the autonomous and artificial intelligence sectors, which he forecasts could be worth $1 trillion for Tesla.
Indeed, following Robotaxi’s showcase of its full self-driving technology, attention remains on how the system can integrate with the AI space. Musk has noted that the technology relies almost entirely on AI.
It is important to mention that the intersection of these technologies has led some industry players to label Tesla as more than an EV stock but rather an AI equity.
Amid this bullish outlook heading into the Trump White House, one lingering concern for Tesla is the fate of tax credits for EV manufacturers. Trump is expected to repeal the credits at the federal level. However, some market players believe Tesla will leverage its dominance to navigate the situation.
Additionally, the stock’s outlook after Q4 earnings will be crucial, considering the company’s sales in the Chinese market disappointed in October.
TSLA stock price analysis
By press time, TSLA was valued at $324.60, down 1.7% in the last 24 hours. Nevertheless, in the past week, TSLA has surged by 14%.
Overall, TSLA shows sustained bullish momentum, as the price remains above the 50-day and 200-day simple moving averages. The recent momentum has pushed the equity into overbought territory, signaling that a short-term correction or consolidation might be on the horizon.
With all factors considered, Tesla’s investor sentiment remains strong. However, risk factors such as the EV tax credits and waning sales in China need to be considered, as they could negatively affect the already overbought stock.
Featured image via Shutterstock
